Actions Have Been Taken to Enhance Fuel Tax Credit Screening and Examination Processes; However, Improvements Are Still Needed

The Commissioner, W&I Division, and Commissioner, SB/SE Division, should develop a process to identify and check future FTC examination closure anomalies, such as an increased or partially decreased FTC claim, to ensure that examination adjustments are posting properly to taxpayer accounts.

The Commissioner, W&I Division, should lower the threshold criteria for FTC claim scheme analysis to expand the scope of returns considered, particularly to identify schemes with large numbers of returns below the IRS’s compliance threshold. Analysis should also focus on preparer misconduct schemes committed by unscrupulous tax return preparers and ghost preparers.